Enphase has performed incredibly well since the Covid 19 outbreak in March of 2020. ENPH has attracted overwhelming investment attention from retail investors and institutional investors during this time, this is partly because Enphase is a solar panel semiconductor company. Both Semiconductors and Solar have been hot sectors since the start of Covid, I believe that this trend will reverse as interest rates move higher from direct action of the Fed in 2022. This should result in investors moving into more defensive investments like consumer staples, energy, utilities, and bonds. All the while ditching shares of the speculative growth names in their portfolio like ENPH and others.
Taking a look at ENPH's technical setup, it is apparent that momentum and investor sentiment is shifting into a more negative state. One quick way to backup that thesis is looking at Enphase's lowered trading volume as of the last year and a half. Another big negative sign is the MACD on the monthly timeframe showing a bearish cross. And lastly ENPH price grinding up against the two year support trend line(denoted as the dashed red line). If or when ENPH breaks below the 2 year support line, expect a steep decline in price. With all that being said, my prediction for the price of ENPH stock during the next year of trading is at least a 35% decline from the current price of 159.85.
Taking a look at ENPH's technical setup, it is apparent that momentum and investor sentiment is shifting into a more negative state. One quick way to backup that thesis is looking at Enphase's lowered trading volume as of the last year and a half. Another big negative sign is the MACD on the monthly timeframe showing a bearish cross. And lastly ENPH price grinding up against the two year support trend line(denoted as the dashed red line). If or when ENPH breaks below the 2 year support line, expect a steep decline in price. With all that being said, my prediction for the price of ENPH stock during the next year of trading is at least a 35% decline from the current price of 159.85.